diff --git a/backend/db/models.py b/backend/db/models.py
index 5e9db49..ca058bf 100644
--- a/backend/db/models.py
+++ b/backend/db/models.py
@@ -335,3 +335,43 @@ class Group(Base):
     created_at: Mapped[datetime] = mapped_column(
         TIMESTAMP(timezone=True), nullable=False, server_default=func.now()
     )
+
+
+class SystemSettings(Base):
+    """AI provider configuration table — one row per provider.
+
+    Stores the active AI provider's API key (Fernet-encrypted), base URL,
+    model name, and context window size.  Only one row has is_active=TRUE
+    at any given time; the admin panel flips all rows atomically.
+
+    Encryption (D-05):
+      api_key_enc is encrypted with HKDF/Fernet using info=b"ai-provider-settings"
+      for domain separation from cloud credentials (info=b"cloud-credentials").
+      Master key is settings.cloud_creds_key (env var CLOUD_CREDS_KEY).
+      See services/ai_config.py for the encryption helpers.
+
+    Design reference: 07-RESEARCH.md Pattern 1.
+    Migration: 0005_system_settings.py.
+    """
+
+    __tablename__ = "system_settings"
+
+    id: Mapped[uuid.UUID] = mapped_column(
+        UUID(as_uuid=True), primary_key=True, default=uuid.uuid4
+    )
+    provider_id: Mapped[str] = mapped_column(String, nullable=False, unique=True)
+    api_key_enc: Mapped[Optional[str]] = mapped_column(Text, nullable=True)
+    base_url: Mapped[Optional[str]] = mapped_column(Text, nullable=True)
+    model_name: Mapped[str] = mapped_column(Text, nullable=False, default="")
+    context_chars: Mapped[int] = mapped_column(Integer, nullable=False, default=8000)
+    is_active: Mapped[bool] = mapped_column(Boolean, nullable=False, default=False)
+    created_at: Mapped[datetime] = mapped_column(
+        TIMESTAMP(timezone=True), nullable=False, server_default=func.now()
+    )
+    updated_at: Mapped[datetime] = mapped_column(
+        TIMESTAMP(timezone=True), nullable=False, server_default=func.now()
+    )
+
+    __table_args__ = (
+        UniqueConstraint("provider_id", name="uq_system_settings_provider_id"),
+    )
diff --git a/backend/migrations/versions/0005_system_settings.py b/backend/migrations/versions/0005_system_settings.py
new file mode 100644
index 0000000..1d263fb
--- /dev/null
+++ b/backend/migrations/versions/0005_system_settings.py
@@ -0,0 +1,82 @@
+"""Add system_settings table for AI provider configuration.
+
+Revision ID: 0005
+Revises: 0004
+Create Date: 2026-06-04
+
+Changes:
+  1. Create system_settings table with one row per AI provider.
+     Stores: api_key_enc (Fernet-encrypted), base_url, model_name,
+     context_chars, is_active flag, and timestamps.
+  2. Add UNIQUE constraint on provider_id (uq_system_settings_provider_id)
+     to enforce one row per provider name.
+
+Design notes (07-RESEARCH.md Pattern 1):
+  - One row per provider (not key-value store) — typed columns, enforced uniqueness.
+  - id column uses gen_random_uuid() server default.
+  - api_key_enc is Text nullable (NULL for local providers like Ollama/LMStudio).
+  - is_active = TRUE for the single active provider; all others FALSE.
+  - Encryption uses HKDF with info=b"ai-provider-settings" (domain separation from
+    cloud credentials which use info=b"cloud-credentials" — same master key, different
+    derived keys; see services/ai_config.py).
+"""
+from __future__ import annotations
+
+import sqlalchemy as sa
+from sqlalchemy.dialects.postgresql import UUID as PG_UUID
+from alembic import op
+
+# revision identifiers, used by Alembic.
+revision = "0005"
+down_revision = "0004"
+branch_labels = None
+depends_on = None
+
+
+def upgrade() -> None:
+    op.create_table("system_settings",
+        sa.Column(
+            "id",
+            PG_UUID(as_uuid=True),
+            primary_key=True,
+            server_default=sa.text("gen_random_uuid()"),
+        ),
+        sa.Column("provider_id", sa.String, nullable=False),
+        sa.Column("api_key_enc", sa.Text, nullable=True),
+        sa.Column("base_url", sa.Text, nullable=True),
+        sa.Column(
+            "model_name",
+            sa.Text,
+            nullable=False,
+            server_default="",
+        ),
+        sa.Column(
+            "context_chars",
+            sa.Integer,
+            nullable=False,
+            server_default="8000",
+        ),
+        sa.Column(
+            "is_active",
+            sa.Boolean,
+            nullable=False,
+            server_default="false",
+        ),
+        sa.Column(
+            "created_at",
+            sa.TIMESTAMP(timezone=True),
+            nullable=False,
+            server_default=sa.text("now()"),
+        ),
+        sa.Column(
+            "updated_at",
+            sa.TIMESTAMP(timezone=True),
+            nullable=False,
+            server_default=sa.text("now()"),
+        ),
+        sa.UniqueConstraint("provider_id", name="uq_system_settings_provider_id"),
+    )
+
+
+def downgrade() -> None:
+    op.drop_table("system_settings")